Fed’s Powell: Holding Rates Steady Leaves Fed ‘Well-Positioned’

Economic Outlook - The economy is in a solid position with a low unemployment rate and a labor market at or near maximum employment [1] - Inflation has been running somewhat above the 2% longer-run objective [1][3] - There's also downside risk to the labor market [5] Monetary Policy - The Federal Open Market Committee decided to leave the policy interest rate unchanged [2] - The current stance of monetary policy is believed to be well-positioned to respond to potential economic developments [2] - The policy rate is characterized as modestly restrictive [3] - Financial conditions are accommodative [4] - The economy is not performing as though restrictive policy were holding it back inappropriately [4] Future Considerations - In coming months, a good amount of data will help inform the assessment of the balance of risks and the appropriate setting of the federal funds rate [5]